Lagarde
  • Extent of the effect of the conflict in Ukraine will depend on the evolution of the conflict
  • Says outlook is 'highly uncertain'
  • Growth revised down in near term
  • Inflation is more broadly based
  • Inflation still expected to decrease progressively
  • Path for rates will be determined by forward guidance
  • Omicron having milder impact on economy that previous waves and restrictions being lifted
  • Impact of 'massive energy shock' may be cushioned by pandemic savings and compensatory schemes
  • Growth to remain weak in Q1
  • Energy costs pushed up Feb inflation 31% and prices have risen further
  • Most measures of underlying inflation have risen above 2%
  • How long high prices will last is uncertain
  • Risks to the economic outlook have increased substantially and are tilted to the downside
  • Warns on risk of a loss of economic confidence

The tone was decidedly somber with repeated risks on lower growth and higher inflation.